What must a Bang Cookies franchisee do if they learn of any unauthorized use of the Manuals?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
fidential Information. Franchisee agrees that competition by Franchisee, Owners, Spouses and/or Immediate Family Members could jeopardize the entire System and cause irreparable harm to Franchisor and franchisees of Bang Cookies Shops. Accordingly, Franchisee and Franchisee's Owners and Spouses agree to comply with the restrictive covenants set forth in this Article 6 and throughout this Agreement.
6.B. RESTRICTIVE COVENANTS: KNOW-HOW
Franchisee agrees that, at all times, both during the Term of this Agreement and after its expiration or termination, Franchisee: (a) shall not use the Know-How in any business or capacity other than the operation of the Franchised Business pursuant to this Agreement and as instructed by Franchisor; (b) shall maintain the confidentiality of the Know-How at all times; (c) shall not make unauthorized copies of documents containing any Know-How; (d) shall take all reasonable steps that Franchisor requires from time
to time to prevent unauthorized use or disclosure of the Know-How; and (e) shall stop using the Know-How immediately upon the expiration, termination or Transfer of this Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 39–40)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees have obligations regarding the confidentiality and use of the operations manual, referred to as 'Know-How' and 'Confidential Information.' Franchisees must not use the Know-How in any business other than their Bang Cookies franchise and as instructed by the franchisor. They must maintain the confidentiality of the Know-How at all times and avoid making unauthorized copies of any documents containing it. Franchisees are required to take all reasonable steps that Bang Cookies requires to prevent unauthorized use or disclosure of the Know-How.
The franchisee's obligations extend to their owners, spouses, directors, officers, employees, and agents, particularly where disclosure of the Know-How or Confidential Information was necessary for the franchise's operations. These individuals may be required to sign agreements to maintain confidentiality. Upon termination or transfer of the franchise agreement, the franchisee must immediately cease using the Know-How.
These measures are in place to protect Bang Cookies's system and brand. Failure to comply with these restrictive covenants could jeopardize the entire system and cause irreparable harm to Bang Cookies and its franchisees. Franchisees should be aware of these obligations and ensure that all relevant parties are informed and compliant to avoid potential legal and financial repercussions.